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Gold Prices Surge: How to Manage Trades as Overbought Conditions Loom

Published 11/22/2024, 04:50 AM
XAU/USD
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XAG/USD
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GC
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SI
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CL
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Gold

  • Gold (XAU/USD) breaks above 2650 was a buy signal targeting 2661/64 and the break above 2665 then hit targets of 2670 and minor resistance at 2677/79.

  • We are just breaking above 2680 to hit the next target of 2691/94.

  • If you have been long Gold on the way up from 2603 according to my report this week, we are hitting resistance at 2691/94 - a short is a bad idea in this bull trend but we are severely overbought in the short term so a high for the day is certainly possible here and I would at least lighten up on longs.

  • Considering the huge profits, it may be sensible to exit and wait, especially as it is Friday.

  • Why blow some profits before the weekend?

  • However, if we continue higher look for 2706/09 before the weekend.

  • Support at 2675/70 could see a low for the morning but longs need stops below 2660.

Gold Hourly Chart

Silver

  • Silver (XAG/USD) break above 3090 was a buy signal for this week but we have stalled just below the next target of 3160/65.

  • It looks like we could reach 3190 on a break above 3170.

  • Silver support at 3090/3080 with a low for the day here yesterday and longs need stops below 3060 today. (We just held above here yesterday).

Silver Hourly Chart

WTI Crude January Futures

  • WTI Crude Futures Last session low and high for the December contract: 6886 - 7038. (To compare the spread with the contract that you trade).

  • We wrote: WTI Crude beat strong resistance at 6880/6920 and made a high for the day at the next target of 6990. If we continue higher today look for 7040/70.

  • We hit 7040/7070 within 2 ticks - so a high for the day exactly here.

  • Support at 6970/50 today and longs need stops below 6900.

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